What is EOS®?
The Entrepreneurial Operating System® is a methodology and toolset for running a business. While parts of it can be used for any size business, typically businesses that are 300 employees or less adopt it.
It is made up of Six Key Components™:
Vision – the 8 questions that need to be answered about who we are, where we’re going, and how we are going to get there. Sound easy? You’d be surprised how challenging this part is, and early in the stages of an EOS® implementation how often this will be updated.
Data – Scorecards and measurables. Everyone has a number. Leading and lagging indicators to measure success and failure.
Process – As small businesses grow; they often don’t mature their processes and there ends up being chaos and inefficiency. Everyone needs to be on the same page so processes are documented and followed by all.
Traction – This is often the most focused on part of an EOS® implementation because it quickly delivers visible results. Quarterly and annual objectives called rocks exist for departments and individuals. Everyone needs to have a rock. Another key component is the Level 10 meeting. Why is it called a Level 10? There is a rating given to every meeting by every attendee with 10 being the highest, and our objective is to get as close as possible. These meetings are timed, disciplined, and documented. This is also an area where companies struggle initially because they require openness, transparency, and hold people accountable. Culture shock central that people quickly grow to love.
Issues – Issues impacting the business are tracked, prioritized, progress (or lack thereof documented). During the Level 10’s, half the meeting time is allocated to IDS: Identify, Discuss, and Solve. One of the core concepts of EOS® is to identify issues impacting the business and get them solved. No back burner! It requires transparency, openness, and accountability.
People – You need to define the organization so you know what the right seats look like, then get the right people in the right seats. The GWC (Get it, Want it, and have the capacity to do it) mantra is something you will hear from me over and over. Define the positions, make sure you have the right people in the right seats (GWC), assign them rocks, and make sure they have the core values of the organization. It’s called 5-5-5.
EOS® is not for everyone! Successful adoption of EOS® requires an internal champion who can drive the effort. More importantly, it requires Visibility, Traceability, and Accountability. Many CEO’s struggle with the level of visibility required and the open, honest conversation it demands. It often requires culture change from the top to the bottom which isn’t easy to navigate. It allows a CEO to be ON the business instead of IN the business; but entrepreneurs don’t make this transition easily. Statistically something like 50% of EOS® implementations end up failing. Is it for you?
If yes, then how do you proceed? First, understand that an EOS® implementation will have significant impacts within a few weeks but takes typically 18 – 24 months to fully implement. There are three paths:
The first is to use an EOS Implementer®. This is someone trained and certified by EOS Worldwide and act as the trainer, planner, facilitator, and coach. They are franchise holders who pay monthly fees to have access to the latest information and a network of other implementers. The good side: they bring a fresh set of eyes to the business from the outside looking in. The bad side: they are on the outside looking in and not responsible for the day-to-day execution of EOS®.
The second option is to use an EOS® Integrator™. This is a person inside the organization getting their hands dirty and is usually the full time or fractional COO. They are certified through the EOS® Integrator™ Masterclass and hopefully have actually experienced an implementation and not just certification.
The third option is DIY (Do It Yourself). Easy answer. No. No. No. Period. Just because you’ve read Traction doesn’t mean you’re ready to self-implement. You will never get the real value of EOS® without having someone experienced to guide you through the process and be the day-to-day owner of executing on the process.
There are times when both an EOS Implementer ® and EOS® Integrator™ are both used. If you have the budget for it, it’s a great combination but usually it’s one or the other.
Good luck on your quest for a way to grow your business. If that’s EOS®, you have a lot of work to do but it will pay off!
Tracy Jefferson is a Fractional COO and EOS® Integrator™ based in the Tampa Bay area with experience across more than two dozen countries. He is a strong advocate for EOS® as well as the Rocket Fuel Visionary/Integrator model.
Written By: John Foster
John Foster has 30 plus years of distinguished leadership and management experience with multiple companies at various stages of development across several fast-paced industries.
Learn more at pathfindergroupus.com